March 10 (Bloomberg) -- U.S. stock-index futures rose before a government report on inventories that may indicate businesses expect greater demand. Procter & Gamble Co. climbed in Europe after the household-goods maker said profit will top analyst estimates.

Standard & Poor's 500 Index futures expiring this month added 2.3 to 1141.70 as of 11:40 a.m. in London. Futures for the Dow Jones Industrial Average, which has Procter & Gamble as one of its components, gained 33 to 10,473. Nasdaq-100 Index futures rose 3 to 1438.

The Nasdaq Composite Index has dropped for three days and erased a gain for the year since a government report Friday said the U.S. economy created fewer jobs than expected. Investor Vanni Lucchelli said signs that consumer demand won't taper off would help stocks resume gains.

``There's good news coming from some companies,'' said Lucchelli, who helps manage $878 million, including shares of General Electric Co. and Microsoft Corp., as head of equities at Cassa Lombarda in Milan. ``I need to see signals from the economy, especially the labor market, that growth can continue and that increases in corporate earnings are sustainable.''

The Commerce Department may report today that inventories at U.S. wholesalers increased 0.4 percent in January after rising a revised 0.5 percent in December, according to the median of economists' estimates. That would be the fifth consecutive increase, and a sign that businesses are anticipating greater demand. The report is scheduled for 10 a.m. Washington time.

Friday's report showed the world's biggest economy created 21,000 jobs last month, below the median forecast of 130,000 by economists polled by Bloomberg News. Profit growth among S&P 500 companies will slow from 18.3 percent last year to 12.4 percent in 2005, according to Thomson Financial.

Procter & Gamble

Procter & Gamble advanced $2.24 to $104.73 in Germany. The Cincinnati-based company said after the close of regular trading that demand for its Prilosec heartburn drug, Olay Regenerist skincare cream and Crest Whitening Expressions toothpaste lifted sales more than expected. The company's board approved a quarterly dividend increase to 50 cents a share from 46 cents a share. Its stock will split 2-for-1 on or after June 18.

Motorola Inc., the world's second-largest maker of mobile phones, slipped 8 cents to $17.41 in Germany. Finnish newspaper Kauppalehti, citing researcher Gartner Inc., said competitor Nokia Oyj regained the No. 1 position in the U.S. mobile-phone market. Nokia has been helped by delivery problems at Motorola, the report said.

AT&T Wireless Services Inc., the third-largest U.S. mobile- phone provider, fell 4 cents to $13.40 in Germany. The company is finding that many high-end handsets used by top-paying customers don't work with new airwaves designed to upgrade the service, the Wall Street Journal reported, citing analysts.

Net2Phone, Arotech

The glitch in service has prompted the company to offer users phones that are less advanced than the ones they are using, the newspaper said.

Net2Phone Inc. lost 50 cents to $6.16 in Germany. The provider of Internet-based telephone services said its net loss for the second quarter ended Jan. 31 widened to 13 cents a share from 11 cents a year earlier.

Arotech Corp. rose 50 cents to $2.46 in Germany. The maker of batteries and armor for vehicles said it expects 2004 revenue to more than double to as much as $42 million from $17.3 million in 2003.

Krispy Kreme

Krispy Kreme Doughnuts Inc., the second-largest U.S. doughnut chain, may be active when exchanges open. The company said fourth-quarter profit rose 45 percent to $16.4 million, boosted by the retailer's expansion. Chief Executive Officer Scott Livengood added 35 stores in the quarter, a 10 percent gain, to further his goal of having as many as 1,000 in North America by 2010. The stock didn't trade in Europe.

A report due at 8:30 a.m. Washington time may show the U.S. trade deficit in January may have eased to $42 billion, still exceeding last year's monthly average, as consumer demand and higher energy costs raised imports, a survey showed in advance of today's government report.

The expected gap of $42 billion, the median forecast of 63 economists in a Bloomberg News survey, compares with deficits of $42.5 billion in December and a record $43 billion in March 2003.

The S&P 500 Index yesterday slipped 6.62, or 0.6 percent, to 1140.58 yesterday. The Nasdaq Composite Index dropped 13.62, or 0.7 percent, to 1995.16, wiping out its gain for the year. The Dow Jones Industrial Average sank 72.52, or 0.7 percent, to 10,456.96.

To contact the reporter on this story: Albertina Torsoli in Milan at atorsoli@bloomberg.net.

Last Updated: March 10, 2004 06:50 EST